Navistar Inc. Shows All-Electric Truck on Capitol Hill

September 30, 2009 by · Leave a Comment 

Members of Congress today (Sept. 30) were shown an early result of federal stimulus investments paying dividends – an all-electric commercial truck from Navistar Inc. that does not depend on foreign oil, is already generating jobs and offers real potential to usher in a new wave of U.S.-led clean vehicle technologies.

With the help of a $39 million U.S. Department of Energy grant announced by President Obama in August, Navistar will build these high technology trucks, designed for maximum efficiency in urban environments. Navistar intends to build 400 all-electric delivery trucks in 2010 at its facility in Elkhart County, Ind., and expects within a few years to be producing several thousand vehicles annually as the market grows, according to a news release.

“At a time when the economy is struggling, supporting breakthrough technologies like Navistar’s all-electric truck will create jobs for our state and help free us from our dependency on energy imports,” said Sen.Evan Bayh , D-Ind. “I was proud to accompany President Obama to Wakarusa, Ind., in August to announce the federal commitment to build this all-electric vehicle in Elkhart County. Indiana continues to be a leader in the development and production of advanced technologies that will provide important benefits to the entire nation. Hoosiers have been at the epicenter of today’s automotive industry, and this technology gives us an opportunity to be at the forefront of tomorrow’s as well.”

The U.S. House of Representatives recently passed legislation allowing for a program of research, development, and commercial application of clean vehicle technologies at DOE (H.R. 3246, Advanced Vehicle Technology Act of 2009). The bill now moves to the Senate for consideration.

The collaboration between Navistar and DOE demonstrates the importance of business and government working together to make energy efficient vehicles a reality, and the continued need for research and development of advanced commercial vehicle technologies.

“The all-electric commercial truck is a concrete example of advanced technology that will be swiftly brought to market with government incentives, just like diesel-hybrid trucks and school buses,” said Greg Elliott, senior vice president, Navistar. “We must continue to invest together for the next generation of advanced vehicles with innovative aerodynamic design and greater hybrid and electric market penetration across the nation.”

This zero tailpipe emission electric commercial truck is the latest of Navistar’s “green” vehicle advancements. The company was an early pioneer in diesel hybrids with the International DuraStar truck and the IC Bus CE Series plug-in hybrid school bus.

The all-electric vehicle would primarily be used by fleets in congested, urban, light duty applications where stop-and-go driving would otherwise consume a large amount of fuel.

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Monaco Inks Deal to Sell Assets to Navistar

April 24, 2009 by · Leave a Comment 

Monaco Coach announced today (April 24) that it has signed a definitive agreement to sell substantially all of the company’s RV  manufacturing assets to a unit of Navistarmonaco-logo Inc. for approximately $52 million. The Monaco board of directors  unanimously approved the transaction.

 The closing of the proposed transaction is scheduled to occur no later than June 1, subject to certain closing conditions and completion of the bankruptcy court approval process, including the auction process and the entry of a final non-appealable sale order of the bankruptcy court pursuant to Section 363 of Title 11 authorizing the transfer of the purchased assets to Navistar. Monaco filed for Chapter 11 bankruptcy relief on March 5 in Delaware.

The transaction includes certain manufacturing facilities located in Indiana and Oregon. In addition, Navistar will acquire all brands, intellectual property, inventories and equipment relating to Monaco’s motorized and towable recreational vehicle segments.

Excluded from the transaction are the Motorhome Resorts segment, the Roadmaster Cargo Trailer business and several industrial properties. Monaco continues to work with other interested parties regarding the acquisition of its Motorhome Resorts segment and other assets held for sale.

“We are excited to move forward with the tremendous resources of Navistar, Inc. supporting our great products,” said Kay Toolson, Monaco chairman and CEO. “Everyone at the company is ready and committed to again build the highest quality RVs in the industry, offer the best customer support and bring jobs back into the communities in which we operate. We appreciate the patience of our employees, dealers, suppliers and RV owners as we navigated through this challenging environment.”

Navistar, with nearly $15 billion in annual sales, is a leading global manufacturer of commercial vehicles, military vehicles, diesel engines and related parts and services.

Monaco cautioned that it presently appears there will be no proceeds ultimately available to the company from this transaction and other potential asset sales sufficient, after payments to creditors, to result in any distribution to the shareholders of Monaco.

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Navistar Offers to Buy Monaco Assets for $50M

March 26, 2009 by · Leave a Comment 

Navistar Inc. would acquire certain RV-related assets of Monaco Coach Corp. and assume certain liabilities associated with that business under a non-binding letter of intent signed this week, Monaco announced late today (March 26).

Navistar, with nearly $15 billion in annual sales, is a leading global manufacturer of commercial vehicles, military vehicles, diesel engines and related parts and services.

The letter of intent contemplates that Monaco and Navistar will work to sign a definitive asset purchase agreement during early April, according to the Monaco release. Following the completion of due diligence and the bankruptcy court approval process, including the auction process, the parties intend to close the transaction shortly after obtaining the entry of a final non-appealable sale order of the bankruptcy court pursuant to Section 363 of Title 11, authorizing the transfer of purchased assets to Navistar.

Monaco continues to work with other interested parties regarding the acquisition of its Motorhome Resorts segment and other assets held for sale.

“We look forward to working with Navistar to complete this transaction and ultimately become a part of one of the nation’s most respected companies,” said Kay Toolson, Monaco chairman and CEO. “This is a great opportunity for our employees, dealers, suppliers and the communities in which we operate. We look forward to continuing the Monaco Coach brands and our legacy of producing quality and innovative recreational vehicles for our owners.”

Headquartered in Coburg, Ore., Monaco has manufacturing facilities in Oregon and Indiana and offers a variety of RVs, from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and R-Vision brand names.

“If we are able to reach agreement, the purchase of certain Monaco assets would fit our strategy of leveraging our assets to expand our diesel business, serve the end customer and would also complement our Workhorse custom chassis business,” said Jack Allen, president of Navistar’s North American truck group. “Any asset purchase would fall within our current capital expenditure program for fiscal 2009.”

The proposed purchase is for Monaco assets, not its stock.

Proceeds of the purchase will go toward Monaco’s secured creditors – its two lenders, Bank of America and Abelco LLC.

Based on information Monaco provided in bankruptcy filings earlier this week, the $50 million amount does not appear to be sufficient to meet any of the company’s unsecured creditors. The filing estimated that the company had between 25,000 and 50,000 creditors.

Daniel C. Ustian, Navistar chairman, president and CEO, sits on the Monaco board. Navistar and Monaco are joint owners of the Monaco chassis plant in Elkhart, Ind., with Navistar owning a majority share.

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